A recent filing in federal bankruptcy court shows that Constance Ensner, the owner of the popular high-end women’s clothing boutique Constance Boutique in Asheville, has filed for a Chapter 13 bankruptcy.
Ensner is a well-known and well-respected local businesswoman who has been around for years. If she’s having a tough time in this economy, then you know things are tough. It’s unclear to me how Ensner’s bankruptcy filing will affect her clothing stores.
Click here to read the bankruptcy filing, which is a public record.
Definition of Chapter 13 bankruptcy:
A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make instalments to creditors over three to five years, if needed you can get some debtor management tips to settle the amount owed. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” (1) If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. §1322(d). During this time the law forbids creditors from starting or continuing collection efforts.
24 Comments
I think that the postings on the bankruptcy filings are important. If the business owners are such outstanding citizens how do they get their finances in such a a state? Their suppliers will be paid (if ever) at greatly reduced charges. Many times it is pennies on the dollar. Have you had your hair cut at Studio Chavvaria or been in Constance Boutique? An average haircut is $80.00 and a dress costs hundreds of dollars. These two business owners are disconnected from the lack of living wage in the greater Asheville area. How many of Constance clients are local? They both need to wake up and smell the financial climate of a local consumer.
Amy, thanks for your note. A few points:
The information I posted is only misleading if you can’t read.
I have clearly said that I don’t post every bankruptcy filed because you’re right, just because it’s public doesn’t mean it’s newsworthy. It IS newsworthy when the high-profile local business people file for bankruptcy.
I have not "dealt" any hand. These folks filed for bankruptcy, not me. And I agree with you again – I’m sure they’ll survive and be better for it.
Jason,
The problem with your post is that it IS misleading. Even WLOS jumped on the bandwagon and photographed Constance’s shops intimating that they must be on the verge of closing…. when they are not! As a consequence, Constance, now, as always, in the midst of working very hard to maintain her three wonderful shops that have graced the streets of Asheville for many years now, must stop and manage the damage that you have created. Just because bankruptcy is public information does not mean it warrants being splashed across everyone’s computer, television and newspaper.
By the way, aren’t you an editor at Mountain X? I can only imagine the thousands upon thousands that Constance spent marketing her business with them over her 25 years in business. Interesting, but they were not listed in the filing. She certainly made sure they were taken care of. She did not deserve this hand you have dealt, but I guarantee you she will come out shining.
hi ash …..and fans…..
seems it’s time i chimed in after reviewing the flurry this post has caused today!
my objective has been to stay in business….. so i want to emphatically clarify that all 3 of my stores are indeed open ….should there be any confusion as to their standings.
i have strived to make the best possible decisions in these challenging economic times to continue in that fulfilling direction. filing chapter 13 has been one of them. the good news is that business is picking up……so i’d prefer the focus stay on encouraging support of the locals to ensure we are all able to continue doing what we are passionate about……..keeping you hot.
ever
constance
Unsubscribe, let’s see – shame called me crass, small-minded, a peeping tom, heartless, etc., and all i said was "piss off." i think i’ve been pretty magnanimous.
as for you – yeah, you got it: buh-bye.
Just like Constance and Guadalupe, you knew the odds of cheapening your appeal as a blogger when you decided to take the risk in attaching the bloody details. Therefore, I think your act of telling Shame to "piss off" when he/she called you out for exploiting these folks, is as "bitchy" as this economy. I bet you were "that kid" who poked creatures with a stick just to see what they’d do.
Stop tapping on the glass of their fish bowl now that you’ve got everybody staring at them. Let us all know when you’ll post your home address and how much you have in the bank and to whom you own money.
I know…"Piss off!" Right?
tara, i’m sorry we disagree. in my estimation, it most certainly is news. i’m not trying to embarrass anyone, and i’m not crossing any lines of common decency. the records are public.
as you duly noted, i don’t regularly publish personal bankruptcies. but these are uncommon times, and these filings certainly do say something about these times.
While LimeAid is mostly correct about Chapter 13, it is not correct that unsecured debt is completely erased. In the Western District of NC Bankruptcy Court, Chapter 13 debtors are required, no exceptions, to pay back at least 10% of their unsecured debt. Many debtors have to pay more than 10%.
It is also misleading to blame additional costs of discharged debt of the banks being passed on to the little people. These banks that were on the verge of collapse before the TARP bailouts lost their pants on risky lending, mostly in the real estate sector. There are a good number of banks that did not require bailout because they didn’t make risky loans either in the commercial and consumer arenas. If banks are hit with a great number of bankrupt customers, maybe they should audit their own lending procedures.
These people get to charge up a storm and then write it all off! Look at their massive charge card bills! No wonder they gave up paying them, and filed for Bankruptcy! Looks like they get all the fancy dinners and fancy clothing and then say OOPS, CAN’T PAY, SORRY! and the bank gets the shaft. How fair is that?
And what’s with yelling at the people who posted this story? Since when is relating a legitimate news story the same as attacking somebody? The story was told calmly and factually. It’s news. Sorry you don’t like it, but it’s news.If you don’t know these people, they look like high rollers who gamed the system while the rest of us fools were paying our bills.
jason-
just because a bankruptcy filing is a matter of public record, does not necessarily make it "news" or worth reporting. i dont see how someone’s personal finances are a "barometer" of the local economy. if they were closing up shop, then i could understand reporting, but these were PERSONAL filings NOT business filings…
these were personal matters for two people that simply do not deserve the public embarrassment of having this published on a blog that carries "the WNC best of 2009" title… especially when these are people that contribute so much to asheville!
i know for a fact that constance lives and breathes her work… she rarely takes a day off and is usually at one of her shops every day of the week from open til close…
there is a level of decency that i feel was overlooked here… i reviewed your previous posts that have the "bankruptcy" tag and NOT a single one cited PERSONAL bankruptcy filing. all of them were businesses.
i’m very disappointed in your decision to print this and call it "news" because it certainly is NOT.
Shameless, if you don’t like it, don’t read it. Piss off.
Again, YOU missed the point…and it is difficult to read with all that mud you’ve been slinging in my eyes.
It’s simple…how would you feel if your personal life was laid bare in your local community news outlet?
And as far as your influence, thanks to your newsbreaking headline, the Citizen -Times jumped on your bandwagon.
You are crass, heartless, and small-minded.
Why don’t you direct your anger at your mother, where it belongs…Got it?
Shame, you apparently can’t read. There’s no "nasty commentary" from me. I simply posted the court records, said that both business people are noteworthy and that I think the filings are a sign of the continued tough economic times. Got it?
I do appreciate you giving me the power to sway national and international markets with your comment about how my blog can influence people. I only wish I had the kind of power you attribute to me.
Murphy, I don’t plan to post every bankruptcy listed. As you note, there are dozens each month. It boils down to the definition of news. It’s not newsworthy when John Doe the average dude in Weaverville files for Chapter 13. It is news when an owner of a high-profile business does.
I also could see a story on the overall number of bankruptcy filings locally, in the context of how bankruptcy filings this year compare to years past, etc, and the implications of the apparent increase in filings. But no, not going to list every single one.
Unfortunately, MEJames, Chapter 13 is not nearly as benign as you describe.
It’s just not the case that you simply restructure your business/personal financial affairs, or that all your ceditors are paid.
In fact, what happens is that you are allowed to restructure debt that’s secured, (like by real estate), so you don’t lose your property, BUT – debt that is NOT secured, like credit card debt, gets erased.
So people who enter Chapter 13 get rid of their charge card debt, which of course becomes a loss taken by the bank, which then becomes an expense that we all share.
Apparently lots of high-rollers in town were actually rolling in debt instead of paying off their bills responsibly. If you look at their charge card debt, it looks like they spent every dime they got, instead of preparing for possible hard times, so naturally when sales fell off, their high-overhead situation did them in.
And the problem this creates in a retail situation is that, after Chapter 13, no supplier will issue credit to you. Which means you stock less inventory, which means you sell less stuff, which then becomes a vicious circle that’s hard to escape.
Sir:
I believe you missed the point of all the comments submitted…
You are mean-spirited and lack the foresight to consider the long-term implications of your nasty commentary on people’s personal lives. The Citizen-Times seems to share your lack of taste, tact, and good-will.
Not even dogs crap where they eat…local business owners such as the two you exploited provide a service, employee locals, and contribute to the tax base.
And as far as being a barometer for the local economy, are you oblivious to the fact that media outlets, even those lacking serious credibility, influence consumer spending? So if you say the local economy is in the crapper, it will be. The Chamber of Commerce should commend you for your stupidity.
Do you have any hobbies other than creating turmoil in the lives of your neighbors? Or do you peep in windows as well?
Again,
ShameShameShame
It does seem a bit snarky to single out 2 well known Asheville folks when I’ll bet there were many more bankruptcies (personal and otherwise), that were made public at the same time (in the hundreds is my guess).
Do you (Ash), plan to start posting ALL Bankruptcies in your blog? Or just those of "well known" locals ….
There’s nothing salacious or cruel about this post — and I am a loyal customer of Constance’s, at all 3 of her stores. No one is questioning her character…and if this isn’t a barometer of the economy, I’d like to know WHY NOT. Constance’s staff have even told me that it has taken a toll — and she’s doing the best she can. I’ll try to patronize her more, now that I know about this fiiling. She and this other business person have nothing to be ashamed of and this blog certainly doesn’t make it seem like they should — but "Shame" amd "M.E." make it seem like they should be. Get over it. And to be fair, go share your criticism with the Shitizen-Times, because they copied straight from this blog and posted the same news online today.
Shame, Happy Holidays to you, too!
Bottom line: The information is public record, and the fact that two prominent business people have filed for bankruptcy is news. I’m not trafficking in misfortune – I’m trying to show that the economy is still taking its toll on people, even well-respected local business people.
Tara, thanks for your note. I see your point, though I disagree. The headline states the personal bankruptcy, then adds the name of the business that each is connected with.
As far as any implication that each business is in trouble – I can’t control the conclusions that people jump to.
M.E. James – There’s nothing tabloid or gossip about posting court records. The records speak for themselves. As for the definition of Chapter 13, you’ll see that I posted the government’s definition in the Ensner post. The meaning is right there – there’s no need for you to reiterate.
For the record, I think bankruptcy filings are a fair barometer of the current economic status. These filings come now, in a recession.
For the record, there’s no doubt that that people can bounce back from a Chapter 13 filing. I never suggested otherwise.
My decision to post this information is simply to highlight the fact that everybody is still facing tough times. Yeah, a bitch economy is distasteful, but that’s what’s happening in Asheville, and that’s what this blog is about.
Welcome to the less than fabulous blog about Asheville . I’m sorry my friend, but your decision to write this is not only incredibly distasteful but reflects poorly on the city and your blog on the whole. Allow me to enlighten you.
First of all chapter 13 simply allows for one to restructure their business/personal financial affairs. Creditors are paid. Secondly, while public record, in essence this sort of information presented in this manner is like tabloid gossip and should be treated as such by the reader.
Constance has been in business for 25 years and this recent development is not reflective of just the economy and it’s impact on AVL nor her businesses on the whole or the current status of. Constance has been one the leading independent retailers and remains as such with respect to providing what otherwise would be sorely lacking in urban chic sophisticated style for women’s wear in this city. And one of the reasons she has been in business for so long and on top of her game is because she has been willing to take RISKS.
While I can’t speak for her or her businesses, I would venture to say that one of the risks that contributed to the current state of affairs was the untimely addition of a 3rd location in an eventual up and coming area of the city. Her store there has since been reorganized and is fast becoming a thriving new business.
Did you not find it interesting that both the owner of Studio Chavarria and Constance both filed? Common link? They both opened an additional location in the same complex prior to a failing global economy.
For the record, several business moguls have filed various forms of Bankruptcy in their lifetime only to rebound with serious success i.e Barneys NY, and Donald Trump.
Constance has given her heart and soul to her businesses and to her customers, and this is another reason for her ongoing success. She is incredibly gracious, talented, and giving. So fear not, the loyal following is not going anywhere nor is her creative foresight.. Like with many people and most entrepreneurs, everyone is reorganizing.
As for the author of this blog, I suggest you get a new barometer for measuring the economic status of Asheville and it’s retail.
Feel compelled to comment on the personal nature of the posts regarding Mr. Chavarria and Ms. Ensner…
You describe Ms. Ensner as a "welll-respected local business owner", yet disrespect her personally with the gossipy nature of your posting. After all, it is her personal finances, not her business that you are "reporting"on.
As for Mr. Chavarria, you mention his support for local charities, yet are less than charitable yourself again by mentioning personal financial issues that are no one’s business.
Cloaking personal commentary in the guise of "business news" is the equivalent of sifting through someone’s trash.
Regardless of the fact that both filings are in the public record, isn’t there some sort of badbadbad karma attached to trafficking in human misfortune.
Happy Holidays…
Shame on You!
hi jason… as a loyal reader and frequent commenter, i have to say that i feel that the wording of the titles of the "bankruptcy reports" is misleading.
in both instances you noted the names of both business owners AND the names of their businesses…it makes it very easy for the reader to confuse personal filings with business filings. neither of their businesses is in trouble as is implied. (thanks to the loyalty of fellow asheville-ians and the need to be well coiffed and well dressed!)
as far as the impact on her clothing stores, i can’t speak for constance, but i know that both retail stores are doing very well and that business at the consignment store is great when i am in there!
you were right about one thing… constance is very well thought of on a personal and business level in this town and i have no doubt that she will (as always) turn lemons into lemonade and keep us all well dressed for many years to come!